The U.S. Senate unanimously passed legislation Friday that would extend the basic federal welfare program, known as Temporary Assistance for Needy Families (TANF), through Sept. 30, 2011. The one-year extension is a stop-gap measure, in lieu of a 5-year reauthorization. The House is expected to concur in the bill during the lame duck session.

Unfortunately, the bill does not revive the TANF emergency contingency fund (ECF) and it cuts off funding for the regular Contingency Fund. The ECF, which was passed as part of the 2009 Recovery Act, enabled states to place adults with private employers and youth in summer jobs programs. The termination of both the ECF and the regular Contingency Fund will make it more difficult for the state to finance the sharp increase in W-2 participation that has occurred over the past two years.

Read more in a new Wisconsin Budget Project blog post.

Jon Peacock